- Home
- Publications
- Quantifying Fiscal Multipliers
Quantifying Fiscal Multipliers
![](https://www.niesr.ac.uk/wp-content/themes/niesr/assets/img/calendar-alt.png)
![](https://www.niesr.ac.uk/wp-content/themes/niesr/assets/img/chain.png)
![](https://www.niesr.ac.uk/wp-content/uploads/2021/10/DIscussion-Paper-Generic.png)
Downloads
DP469: Quantifying Fiscal MultipliersRelated Themes
Macro-Economic Dynamics and PolicyPaper Category Number
469
This paper uses the National Institute Global Econometric Model (NiGEM) to quantify the magnitude of fiscal multipliers in each Euro Area country when fiscal policies are enacted in each country in isolation and when there is international coordination of fiscal policies. We find that fiscal multipliers are usually below 1 when countries implement fiscal policies in isolation. By contrast, multipliers increase significantly, on average by 50 to a 100 per cent depending on the fiscal instrument, when there is international coordination of fiscal policies. Our analysis suggests that fiscal multipliers arising from government spending measures are larger than those arising from changes in taxation. These estimates correlate with the degree of openness to trade of each country, the sensitivity of aggregate consumption to fluctuations in short-term income and country size. We also find that fiscal multipliers increase with the proportion of liquidity constrained agents.
Related Blog Posts
![](https://www.niesr.ac.uk/wp-content/uploads/2024/06/iStock-683963174-1-1-640x640.jpg)
![](https://www.niesr.ac.uk/wp-content/uploads/2024/04/Bank-of-England-640x640.jpg)
![](https://www.niesr.ac.uk/wp-content/uploads/2024/02/iStock-1130124948-640x640.jpg)
![](https://www.niesr.ac.uk/wp-content/uploads/2024/02/Public-Debt-Sustainability-and-Fiscal-Rules-640x640.jpg)
Public Debt Sustainability and Fiscal Rules
Stephen Millard
Benjamin Caswell
05 Feb 2024
4 min read
Related Projects
Related News
![Bank of England Building and Duke of Wellington statue](https://www.niesr.ac.uk/wp-content/uploads/2022/08/Bank-of-England-Building-640x640.png)
![Front of the Bank of England with statue of the Duke of Wellington](https://www.niesr.ac.uk/wp-content/uploads/2023/09/Bank-of-England-Independence-640x640.png)
Letter to the Financial Times: Is Perfidious Albion About to Make a Return?
14 Jun 2024
3 min read
![](https://www.niesr.ac.uk/wp-content/uploads/2024/05/iStock-2013089711-1-1-640x640.jpg)
![](https://www.niesr.ac.uk/wp-content/uploads/2022/08/Call-for-Paper-Kemar-QTQE-1200-×-1200px-1-640x640.png)
Call for Papers: Lessons From Quantitative Easing & Quantitative Tightening
09 Feb 2024
1 min read
Related Publications
![exterior photo of the Bank of England](https://www.niesr.ac.uk/wp-content/uploads/2024/06/iStock-1331969847-modified-09bd29cf-1fae-4789-b36a-b4d3e52f5dab-640x640.jpg)
![](https://www.niesr.ac.uk/wp-content/uploads/2024/05/US_debt_image-640x640.jpg)
Everything You Wanted to Know About the US Budget Deficit and Debt But Were Afraid to Ask
09 May 2024
Global Economic Outlook Box Analysis
![](https://www.niesr.ac.uk/wp-content/uploads/2024/05/recover_resilience_image-640x640.jpg)
To What Extent Has the Recovery and Resilience Facility Supported the EU Recovery from Covid?
09 May 2024
Global Economic Outlook Topical Feature
![](https://www.niesr.ac.uk/wp-content/uploads/2024/05/Labour-Market-Income-640x640.png)
Related events
![Event Image](https://www.niesr.ac.uk/wp-content/uploads/2024/05/Workshop-Imagery.png)
2024 UK General Election: The Economy and Living Standards
![Event Image](https://www.niesr.ac.uk/wp-content/uploads/2023/12/Cycles-Structural-Changes-Markets.png)
Assessing Cycles and Structural Changes in Markets
![Event Image](https://www.niesr.ac.uk/wp-content/uploads/2023/02/BCF-Imagery-e1702367621405.png)
Business Conditions Forum
With an election expected to take place at some point in 2024, we begin the year by focusing this quarter’s Business Conditions Forum on the following topics: Can we expect…
![Event Image](https://www.niesr.ac.uk/wp-content/uploads/2021/10/Dow-Lecture-2022-social-image.jpg)
2022 Dow Lecture: The Economy and Policy Trade-Off
![](https://www.niesr.ac.uk/wp-content/themes/niesr/assets/img/arrow-right.png)
![](https://www.niesr.ac.uk/wp-content/themes/niesr/assets/img/arrow-right.png)